ML18019A555
| ML18019A555 | |
| Person / Time | |
|---|---|
| Site: | Harris  |
| Issue date: | 01/29/1986 |
| From: | Funches J Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML18019A553 | List: |
| References | |
| A, NUDOCS 8602030065 | |
| Download: ML18019A555 (5) | |
Text
NUCLEAR REGULATORY COMMISSION CAROLINA PONE AND THE NORTH 7590-01 ON I
The Director of the Office of Nuclear Reactor Regulation has made a finding in accordance with Section 105c(2) of the Atomic Energy Act of 1954, as
- amended, that no significant (antitrust) changes in the licensees'ctivities or proposed activities have occurred subsequent to the construction permit review of Unit 1 of the Shearon Harris Nuclear Power Plant by the Attorney General and the Commission.
The finding is as follows:
"Section 105c(2) of the Atomic Energy Act of 1954, as
- amended, provides for an antitrust review of an application for an operating license if the Commission determines that significant changes in the licensees'ctivities or proposed activities have occurred subsequent to the previous construction permit review.
The Commission has delegated the authority to make the "significant change" determination to the Director, Office of Nuclear Reactor Regulation.
Based upon an examination of the events since issuance of the Shearon Harris construction permits to the Carolina Power and Light Company, the staffs of the Planning and Resource Analysis Branch, Office of Nuclear Reactor Regulation and the Antitrust Section of
~ the Office of the Executive Legal Director, hereafter referred to as "staff",
have jointly concluded, after consultation with the Department of Justice, that the changes that have occurred since the antitrust construction permit review are not of the nature to require a second antitrust review at the operating license stage of the application.
"In reaching this conclusion, the staff considered the structure of the electric utility industry in both North and South Carolina, the events relevant to the Shearon Harris construction permit review and the related Brunswick operating license review and the events that have occurred subsequent to these reviews.
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"The conclusion of the staff's analysis is as follows:
'Carolina Power and Light (CPL) and the North Carol.ina Eastern Municipal Power Agency (NCEMPA) are joint owners of the Shearon Harris Nuclear Power Plant (Harris).
CPL is a relatively large, fully integrated investor owned utility system serving in North Carolina and South Carolina.
NCEMPA is a joint action agency, representing over thirty municipal electric utility systems in North Carolina.
CPL supplied wholesale power to NCEMPA, and contractually provides transmission service between NCEMPA and its members.
CPL also provides wholesale service to eighteen electric membership cooperatives, four other municipal electric utilities, and one private utility.
'The Department of Justice (Department) rendered antitrust advice to the Commission in 1972 following the Department's review of CPL in connection with CPL's construction permit (CP) application for Harris.
In that advice letter, the Department noted that it had received separate complaints regarding CPL's practices, one from a group of fourteen municipal electric distribution utilities, and a -second from EPIC, Inc.,
an agency representing both municipals and cooperatives in the area.
In addition, the Department noted several objectionable restricti.ve provisions in CPL s wholesale contracts.
CPL denied any anticompetitive intent or actions, but agreed to remove the alleged restrictive contract provisions, and agreed to accept certain procompetitive conditions in the Harris licenses in exchange for a "no hearing" advice letter from the Department.
'Subsequent to the Harris CP antitrust review, the Department
NCEMPA with respect to its ownership participation in Harris.
In neither instance, did the Department express any further antitrust concerns.
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'Staff's review of changes in load forecasts, generation and transmission. additions, power delivery points, and rate schedules does not suggest any significant anticompetitive effects.
- Further, CPL's purchases of the Domestic Electric Company and of Pinehurst, Inc.,
indicate reasonable business transactions which had no significant consumer or local regulatory opposition.
Finally, staff views CPL's sale of an ownership share in Harris to NCEMPA and the associated service arrangements as consistent with antitrust conditions contained in other nuclear power plant licenses, and the transmission service arrangements consistent with its Harris antitrust license conditions.
Although negotiations for transmission service arrangements between CPL and the North Carolina Electric Membership Corporation (NCEMC) have not
~ been completed, any subsequent problems that may arise therewith may be treated under the Commission's rules for enforcement of license conditions.
In conclusion, staff does not recommend a "significant change" finding for the Harris OL application."'Based upon staff's analysis, it is my finding that a formal operating license antitrust review of the Shearon Harris Power Plant, Unit 1, is not required."
Signed on January 27, 1986 by Harold R. Denton, Director of the Office of Nuclear Reactor Regulation.
Any person whose interest may be affected by this finding may file with full particulars a request for reevaluation with the Director of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Mashington, D.C.
20555 for 30 days from the date of the publication of the'Federal
~Re ister notice.
Requests for a reevaluation of the no significant changes determination shall be accepted after the date when the Director's finding
becomes final but before the issuance of the OL only if they contain new information, such as information about facts or events of antitrust sig-nificance that have occurred since that date, or information that could not reasonably have been submitted prior to that date.
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DATE:1/ /86: 1/ 86: 1 9/86 OFFICIAL RECORD COPY